Highlights from the BIDS Study on PKSF's Monitoring and Evaluation System
A recent study conducted by the Bangladesh Institute of Development Study (BIDS) finds that the microcredit program of PKSF implemented through its POs has benefited the rural poor in numerous ways. The program has significantly increased incomes of the poor improved their standard of living, and contributed to their social development and, empowerment.
According to the Study, the microcredit program has supported numerous income-generating activities and has contributed immensely towards promoting self-employment activities. It is the area of transportation/transport services where the program has made most significant contribution.
The study finds, very close association between program participation and engagement in non-farm activities. Increased access to the credit market due to provisioning of MFI loans, rural poor now have greater access to other markets for economic sustenance. This gets reflected in greater involvement of program participants in the land (rental or mortgage) market, and a greater access to the informal credit market (such as neighbors) for the regular participants among the poor households. Their dependence on moneylenders has also declined.
There is also a significant positive effect of regular program participation on income and on average consumption of poor households. Particularly, increase in the consumption of pulse, fish and milk. There is also some indication that average consumption tends to rise with increase in the length of membership. The study also finds that the increase in income of regular participants during the flood year was higher than all other sample groups, except the new participants.
According to the study, the post-flood recovery was remarkably quick, showing resilience capacity of the poor rural households of Bangladesh. Analysis of the study results shows noticeable impact of program participation in protecting from such natural calamities/shocks.
Improved economic well being due to program participation has contributed to reduction of household level vulnerability. The participant households were less vulnerable concerning health crisis, large expenses and violence. Program participants tend to resort to soft options, such as, borrowing at zero or low interest rates, and through mobilizing material and moral support from patrons and kinship network.
An important source of economic crisis faced by the rural households is rooted in the seasonal variation of employment and income. The study finds that the program participation among poor households leads to mixing of non-farm self-employed activities, which reduces seasonal variation in total employment and income. Generally, the study finds program participants to be less vulnerable to crisis even though they face similar degree of crisis as non-participants.
The study finds general improvements in living standards of all sample households. One example is the decline in the use of open space by the adults for the toilet purpose -the decline being largest for occasional and regular participants. Similarly, access for child immunization improved for all, however, the gender gap for both DPT and Measles vaccination reduced relatively more among children in regular participants.
Access to other modern health care facilities such as contraception prevalence increased for all and the increase in such access was higher among the regular participants. One interesting findings from the survey is the decline in reliance on female method, which is more visible among the regular participants.
Result of the study shows that participation in MFI program in general, and regular participation in particular, had positive effect on household resource allocation on house repair, schooling and health care. All these had improved the social well being of the participant households more then the non-participants. More importantly, participation in MFI programs led to decline in gender gap in access to schooling and to modern health care.
Increase in access to credit has generally benefited rural women through increased access to markets, financial institutions, and service providers and to information and knowledge. However, participation had little effect on women's access to labor market, which reflects inflexibility in certain social and cultural norms, which are yet to be removed from the rural society. The most visible positive effect of participation on women's relative position has been with respect to decision making on household expenditure and fertility regulation. The study also shows that women's access to household income has increased and their status in the family has improved. Overall, according to the study regular participants registered a faster rate of poverty reduction
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